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Trucking payrolls soared by 5,700 U.S. jobs in August

Trucking company payrolls soared in August, growing at the fastest 12-month pace since 2015 as logistics operators boosted hiring to keep pace with booming freight demand.

Fleets added 5,700 jobs last month, according to preliminary figures the Labor Department released Friday. It is the fourth straight month of growth in a sector where employers have been buying more trucks and raising driver pay as they look to expand freight capacity.

Trucking companies have added 30,600 jobs since August 2017, the most since employment in the business grew by 37,400 jobs in the 12 months ending August 2015.

“You hear a lot from employers about how hard it is to hire in the sector, but when push comes to shove, they seem to be able to hire workers,” said Martha Gimbel, director of economic research at job-search site Indeed.com.

The broader transportation and warehousing sector was one of the fastest-growing in the U.S. economy last month, adding more than 20,000 positions, including strong hiring in transit and ground passenger operations. Courier and messenger firms added 3,800 positions in August, while warehouse operators added 2,400 jobs, extending steady gains that come as growing e-commerce sales spur demand for delivery drivers and workers who fulfill online orders.

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Overall the U.S. economy added 201,000 jobs, a pickup from July, and unemployment held steady at 3.9%.

The figures suggested ongoing changes in the broader economy, with service sector employers adding 178,000 jobs while goods-producing payrolls expanded by just 26,000 jobs.

Employment fell slightly in manufacturing, which lost 3,000 jobs last month, breaking a one-year stretch of growth. Sales and production at factories grew at a weaker rate in July, though U.S. manufacturing activity is still expanding at a strong pace.

The retail sector also contracted in August, slashing a net 5,900 positions, including more than 20,000 at clothing and clothing accessories stores.

“The growth of e-commerce is making transportation and warehousing the new retail,” said Andrew Chamberlain, chief economist for recruiting site Glassdoor. “We see very strong hiring for delivery drivers and truck drivers and anyone touching e-commerce, including warehouse and material handlers.”

Those workers are also earning more, as employers boost wages to lure staff in a tight labour market. Pay for delivery drivers is up 10.2% from January 2015, while wages for material handlers and truck drivers rose 9.3% and 9.1%, respectively, over the same period, according to Glassdoor.

Trucking companies are also boosting sign-on bonuses and other benefits to try and attract workers in a high-turnover industry where drivers often hop from one fleet to the next.

This month U.S. Xpress Enterprises Inc., a large Chattanooga, Tenn.-based carrier, made new employees eligible for health benefits “from day one” instead of having to wait 90 days, Chief Executive Eric Fuller said. If “somebody already has family under health insurance, they’re able to shift to another carrier and not have to wait.”

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